Haryana State Employment of Local Candidates Bill, 2020: Implementation and impact


The Haryana State Employment of Local Candidates Bill, 2020, which was passed on November 5, 2020 by the Haryana State Legislative Assembly and given assent to by the Governor of the state earlier this year, on March 2, has been called upon for application from January 15, 2022, for a period of 10 years.


The Bill mandates that all private corporations, societies, trusts, limited liability partnerships, firms, and establishments employing 10 or more persons in Haryana set aside 75% of all employment up to a monthly wage of INR 30,000 (reduced from earlier threshold of INR 50,000 by notification) or as the government may notify from time to time. Additionally, under Section 3, it requires that these businesses register all of their employees, who make money on a designated portal/database (the reference as under Section 2(d)) within three months of coming into force of the Bill, and objects call for or creation of any further employment until such registration is completed.

Changes brought about by the Bill

Reporting requirements is an obligation that the Bill creates as a first for the aforementioned employers in the State under Section 6, which obligates such employers to submit quarterly reports on their efforts to attract local talent. This report must be completed in accordance with the State government’s standards.

The Bill finally enlists penalties for respective non-compliances under Sections 11-14, as follows:

  • A fine of INR 25,000 to INR 1,00,000 may be levied if the criteria of the Bill are not followed;
  • If the employer decides to continue with the infringement even after conviction, a penalty of INR 1,000 per day would be applied until the violation is completed;
  • A penalty of INR 50,000 shall be imposed on any employer that generates fake records, deliberately produces misleading assertions, or counterfeits records. If there is a repeat infringement, the penalty will escalate to between INR 2,00,000 and INR 5,00,000;
  • If an employer fails to hire 75% local people for acceptable occupations as required by the Bill, a fine ranging from INR 50,000 to INR 2,00,000 would be imposed.

Impact of the Bill

Liability in these instances would extend to Director, Manager, Secretary, Agent, persons concerned with the management of the employer.

Exemptions from offering reservation to locals can be claimed by employers if a sufficient number of local applicants with the requisite skill, qualification, or competency are not available.

An official with the level of Deputy Commissioner or higher will review such claim and provide three options, which are to accept the claim, deny the claim with reasons, or advise the employer to educate local applicants to acquire the requisite skill or competency.

It is essential for all business owners within the state of Haryana to take note of the requirements and ensure they work towards compliance starting from January 2022.